Gift Annuity

This is among the oldest, simplest and most popular of charitable life-payment plans. In exchange for the donation of cash, property or other liquid assets, the Foundation contractually guarantees to make specified annuity payments to the donor and/or another beneficiary. The minimum age of either beneficiary is 45 years of age. State laws may restrict the types of property donated. The payout rate is set by agreement between the donor and the Foundation, based upon the age and number of beneficiaries, and the current rates published by the Council on Gift Annuities (a national association of philanthropic organizations that reviews these rates objectively). The minimum initial contribution is $100,000.

Advantages:
- If the contributed asset currently has a low rate of return, such as a CD that is coming to maturity, the annuity payment can increase the income to the donor for this particular asset.
- A current income tax deduction is obtained.
- The asset leaves your estate, reducing the value of your estate for estate tax purposes.
- A significant amount of each annuity payment will be tax-free.
- Annuity payments can begin immediately, or be deferred until such time as retirement, college for grandchildren, or other special life events. This allows for balancing high current income with income needs during retirement, thus minimizing income taxes over your lifetime.

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